Power supply and electronic component maker Delta Electronics Inc (台達電) yesterday posted NT$40.78 billion (US$1.35 billion) in revenue for last month, rising 21.6 percent year-on-year, driven by growing demand for power and heat dissipation products used in artificial intelligence-related devices.
On a monthly basis, revenue dropped about 6 percent from NT$43.44 billion.
Cumulative revenue in the first four months rose 27.9 percent to NT$159.7 billion, Delta said in a statement.
Photo: CNA
Despite the decline, Delta maintained its revenue growth forecast for this quarter.
Delta chairman Ping Cheng (鄭平) told investors during the quarterly earnings conference last week that revenue this quarter would surpass the first quarter’s NT$118.92 billion, driven by front-loaded orders from US customers taking advantage of the 90-day pause of US “reciprocal” tariffs.
Although several local electronics makers have taken steps to build new US factories to avoid potential tariff hikes, Delta is still studying its feasibility as exports from Thailand to the US, while subject to 30 percent tariffs, would still be more cost-effective than operating a factory in the US, Cheng said.
About half of Delta’s production capacity is in China, but it is building five new factories in Thailand to diversify its manufacturing, in addition to its production sites in Taiwan and India.
Separately, notebook computer contract maker Compal Electronics Inc (仁寶) yesterday said revenue dropped 19.4 percent year-on-year, or 18.3 percent month-on-month, to NT$62.29 billion last month.
US tariff policy uncertainty has made it difficult to gauge how much business would be affected going forward, Compal chairman Ray Chen (陳瑞聰) said.
The company is considering building a factory in the US, possibly in Texas, and accelerating its deployment in Mexico, Chen said.
The details and timeline for the US factory plan are still under discussion, Chen said.
Following the New Taiwan dollar’s sharp appreciation, Chen said Compal would have to recognize some foreign exchange losses.
Compal is seeing an influx of front-loading and urgent orders, which is helping boost shipments, he said.
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